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Where there is smoke, there is fire, the saying goes. And it holds any truth, fresh rumours of a Twitter acquisition may have more truth to them than you think.
According to Mashable, Twitter’s shares rose ‘amid gossip in the investment community that the company had hired advisors to deal with takeover bids.’ At this rumour, Twitter’s shares rose up to 4.8% as rumours of Google and Yahoo planning a possible buyout surfaced.
On Tuesday, rumours were doing the rounds that Twitter had hired advisers including Goldman Sachs to fend off companies that are interested in buying the social media company. The two companies rumoured to be showing interest is Google and the other is Yahoo.
Speculation around Google trying to buy Twitter is nothing new. In 2011, Google was rumoured to have offered Twitter a US$10-billion acquisition, which it turned down. Other companies rumoured to have in the past shown interest in buying out Twitter include Microsoft and Facebook.
Google’s interest comes shortly after splitting off its own attempt at social networking, Google+. It would make sense then that Google would be interested in Twitter.
Twitter has struggled to increase its monthly users and has been of late finding ways to vigorously its ads approach. This is by no means that Twitter is struggling, in fact, Twitter reported sales of $479 million in the fourth quarter 2014, and therefore might not be willing to sell but a generous offer from Google could be tempting.
Twitter has not commented on the rumours.